Regulatory AlertsSri Lanka: fintech & payments regulation
RegulatedCBN licenses MVTS and e-money; SEC regulates securities; strict capital rules apply
- Lead regulator
- Central Bank of Sri Lanka
- Also involved
- SEC (securities/investment) · FIU (AML/CFT)
- Core law
- Payment and Settlement Systems Act No. 40 of 2005
- Entry capital
- LKR 15 million (MVTS)
- Approval timeline
- 6-12 months for MVTS; variable for e-money
- Customer assets
- Segregated trust accounts required
- Data protection
- Personal Data Protection Act No. 9 of 2022 · PDPC
- Sandbox
- No
The Central Bank of Sri Lanka (CBSL) is the primary supervisor for payment systems, e-money, and money transfer services under the Payment and Settlement Systems Act. The Securities and Exchange Commission (SEC) regulates investment-related fintech. The regulatory environment is strict, with recent amendments increasing capital requirements for Money or Value Transfer Service Providers (MVTS) to LKR 15 million.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicencePayment Service Provider License[1] Must join LANKAQR; strict security guidelines apply | — | — | Central Bank of Sri Lanka |
| E-money & wallet issuance | LicenceMobile Phone Based E-Money License[2][3] Issued to licensed banks/finance companies; strict KYC limits | — | — | Central Bank of Sri Lanka |
| Domestic money transfer | LicenceMVTS Certificate of Registration[4][5] MVTS regulations amended 2025 to raise capital floor | LKR 15 million | — | Central Bank of Sri Lanka |
| Cross-border remittance | LicenceMVTS Certificate of Registration[4][5] Cross-border remittance falls under MVTS regime | LKR 15 million | — | Central Bank of Sri Lanka |
| Agent network | LicenceBanking Act Direction Approval Agents of licensed banks require prior CBSL approval | — | — | Central Bank of Sri Lanka |
| Open banking / account information | Uncertainverify with regulator No specific open banking framework identified | — | — | — |
| Foreign-exchange services | LicenceAuthorised Money Broker Certificate[6][7] Money broking requires CBSL authorization | — | — | Central Bank of Sri Lanka |
New — what changed recently
- 2025-01-13MVTS Regulations No. 1 of 2025 — Increased minimum capital for MVTS providers to LKR 15 million.[4]
- 2024-04-30MVTS Regulations No. 1 of 2024 — Established CBSL as sole regulator for MVTS and mandated Certificate of Registration.[5]
- 2023-12-29Circular No. 4 of 2023 — Revised e-money account limits: LKR 150k for enhanced KYC, LKR 20k for basic.[2]
Market-entry checklist
- 1Secure MVTS RegistrationObtain Certificate of Registration from CBSL with LKR 15m capital.
- 2Implement LANKAQR ComplianceAdopt LANKAQR standards for QR payments and P2P transfers.
- 3Establish E-Money FrameworkPartner with licensed bank/finance company for e-money issuance.
- 4Register with FIURegister as a reporting entity for AML/CFT compliance.
- 5Secure Data ProtectionComply with Personal Data Protection Act No. 9 of 2022.
Sources
- LANKAQR National Quick Response Code Standard for Local Currency Payments and Peer-to-Peer Fund Transfers · 2026-03-13
- Individual Stored Value, Day, and Transaction Limits for Customer e-Money Accounts · 2023-12-29
- Mobile Phone Based E-Money Services · 2022-03-18
- Money or Value Transfer Service Providers Regulations No. 1 of 2025 · 2026-01-13
- Money or Value Transfer Service Providers Regulations No. 1 of 2024 · 2024-04-30
- Regulatory Compliance Requirements to Authorised Money Broking Companies · 2024-01-19
- Money Broking Regulations No. 1 of 2018 · 2018-06-18